The cost of electricity in the Isle of Man is to rise by 30%.

Manx Utilities’ bills will jump 15% next month and a further 15% in July.

The initial price increase means that electricity charges for most users will increase from 16.9p per unit to 19.4p per unit. A second increase from July 1 would mean the cost for domestic and commercial customers would increase to 22p per unit.

Energy prices around the world have increased significantly over recent months, particularly the cost of natural gas, which is used to generate most of the island’s electricity.

A year ago the average annual wholesale price of natural gas was around 50p per therm. Today, the price per therm is around six times more expensive at £3 per therm.

Wholesale prices for natural gas recently went as high as £7.50 per therm, before prices stabilised.

Manx Utilities uses around 30 million therms of natural gas each year.

Manx Utilities and the Council of Ministers have held talks about the issue before releasing information about the changes today.

Electric vehicle charging will increase from 19p to 24.7p per unit with the Rapid Charger facility at the Sea Terminal charging at the higher rate of 32p per unit (previously 25p).

Read what the politicians say about this in today’s Manx Independent.